Signet sales growth improves, North America and international markets still weigh

Signet Jewelers announced on Thursday sales for the second quarter fell 7.6% to $1.5 billion, coinciding with a 3.3% dip is same store sales during the three months ending August 3.

The Bermuda-based jeweler said its North America market contracted 6.9% to $1.4 billion, or 3.7% on a same store sales comparison, offset by an increase of 1.6% in total average transaction value, on a lower number of transactions.

Elsewhere, international sales plummeted 15.2% to $86.5 million, reflecting a decrease of 13.4% in total ATV driven by the previously announced sale of prestige watch locations, as well as a lower number of transactions.

The company swung to an operating loss of $100.9 million during the quarter, down from operating income of $90.2 million in the prior-year period, due to $166 million of non-cash impairment charges substantially related to Digital Banners goodwill and the Blue Nile trade name, said the company in a statement.

​”I’d like to thank our Signet team for delivering our fifth consecutive quarter of sequential same store sales improvement, up more than 5 points compared to the first quarter of this year and turning positive third quarter to date. Our strategy to accelerate new merchandise at the right price points is capturing customer demand and driving merchandise margin expansion,” said Signet chief executive officer, Virginia Drosos.

“Both the internal and external metrics we track indicate increasing engagements as we head into the back-half of the year. This combined with growth in new high margin fashion merchandise and services gives us confidence in delivering our annual guidance.”

Looking ahead, the company expects fiscal 2025 sales to land between $6.66 billion and $7.02 billion, with
same store sales down 4.5% to an increase of 0.5%.